Foreign banks eye India after RBL deal

Emirates NBD Bank's decision to buy a controlling stake in RBL Bank for $3 billion is likely to see more global banks looking at having an India play. With the banking regulator likely to allow such transactions going forward, a floodgate of more such transactions will open up, say bankers and industry experts.

- Sneha Shah & Priyamvada C.

On Saturday, Emirates NBD said it has entered into an agreement to acquire a 60% stake in RBL Bank for ₹26,850 crore. The transaction, which is subject to shareholder and regulatory approvals, will see Emirates NBD acquiring more stake through a mandatory open offer to the rest of the shareholders, a joint statement said. This marks the largest foreign direct investment in India's banking sector to date. In the past month alone, two global groups have invested in local lenders. On 2 October, Abu Dhabi-based Avenir Investment RSC, an affiliate of International Holding Co. (IHC), agreed to acquire a 43.46% stake in Sa